Dollar inflows, RBI intervention help rupee recover by 30 paise

Dollar inflows, RBI intervention help rupee recover by 30 paise

The rupee on Friday staged a smart recovery to end 30 paise higher at 59.27 on the back of hefty corporate inflows and dollar selling by banks at the behest of Reserve Bank of India, amid Finance Minister P Chidambaram's assurance that there was no need for panic over the recent currency slide.

Dollar inflows, RBI intervention help rupee recover by 30 paise

"Some amount of corporate inflows was seen today," said Ashtosh Raina, Head of Forex Trading, HDFC Bank.

Traders said public sector banks sold dollars at the direction of RBI to arrest the currency slide. Rupee has lost over 10 per cent since April 30.

"There was intervention (verbal) by RBI in market, which helped the sentiment. Trading of European market, US Dow trends and domestic market performance also supported the currency," said Hemal Doshi, Chief Currency Strategist, Geojit Comtrade.

The rupee commenced lower at 59.74 a dollar from previous close of 59.57 at the Interbank Foreign Exchange market and declined further to a low of 59.80.

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Image: A Kashmiri woman walks under a garland made of rupee notes on display at a market in Srinagar.Photographs: Fayaz Kabli/Reuters